Problem 8-20 Cash Budget; Income Statement; Balance Sheet [LO2, LO4, LO8, LO9, LO10] The balance sheet of Phototec, Inc., a distributor of photographic supplies, as of May 31 is given below: Phototec, Inc. Balance Sheet May 31 Assets Cash $ 9,900 Accounts receivable 66,000 Inventory 33,000 Buildings and equipment, net of depreciation 551,100 Total assets $ 660,000 Liabilities and Stockholders' Equity Accounts payable $ 79,200 Note payable 14,520 Capital stock 487,080 Retained earnings 79,200 Total liabilities and stockholders' equity $ 660,000 The company is in the process of preparing a budget for June and has assembled the following data: a. Sales are budgeted at $270,000 for June. Of these sales, $80,000 will be for cash; the remainder will be credit sales. One-half of a months credit sales are collected in the month the sales are made, and the remainder is collected the following month. All of the May 31 accounts receivable will be collected in June. b. Purchases of inventory are expected to total $196,000 during June. These purchases will all be on account. Fifty percent of all inventory purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the May 31 accounts payable to suppliers will be paid during June. c. The June 30 inventory balance is budgeted at $33,000. d. Selling and administrative expenses for June are budgeted at $34,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month. e. The note payable on the May 31 balance sheet will be paid during June. The companys interest expense for June (on all borrowing) will be $700, which will be paid in cash. f. New warehouse equipment costing $8,000 will be purchased for cash during June. g. During June, the company will borrow $21,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required: 1a. Prepare schedule of expected cash collections from sales and a schedule of expected cash disbursements for inventory purchases. (Omit the "$" sign in your response.) Schedule of Expected Cash Collections Cash sales-June $ 80000 Collections on accounts receivable: May 31 balance 66000 June 95000 Total cash receipts $ 241000 Schedule of Expected Cash Disbursements May 31 accounts payable balance $ 79200 June purchases 98000 Total cash payments $ 177200 1b. Prepare a cash budget for June. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Omit the "$" sign in your response.) Phototec, Inc. Cash Budget For the Month of June Cash balance, beginning $ 9900 Add receipts from customers 241000 Total cash available 250900 Less disbursements: Purchase of inventory 98000 Selling and administrative expenses 34000 Purchases of equipment 8000 Total cash disbursements 140000 Excess of receipts over disbursements 110900 Financing: Borrowings-note 21000 Repayments-note 14520 Interest 700 Total financing 36220 Cash balance, ending $ 5780 2. Prepare a budgeted income statement for June. (Input all amounts as positive values. Omit the "$" sign in your response.) Phototec, Inc. Budgeted Income Statement For the Month of June $ 241000 Cost of goods sold: $ 33000 98000 131000 98000 33000 80000 34000 46000 700 $ 3. Prepare a budgeted balance sheet as of June 30. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) Phototec, Inc. Budgeted Balance Sheet June 30 Assets $ Total assets $ Liabilities and Stockholders' Equity $ Total liabilities and equity $